Favourable Policy and Forgotten Contracts: Private Sector Participation in Water and Sanitation Services in Stutterheim, South Africa

IN 1993, PRIOR to democratic elections in South Africa, the Stutterheim municipality contracted Aqua Gold (now WSSA, a joint venture between Northumbrian-Lyonnaise International and a local company) to manage, operate and maintain water and sanitation services in the municipality. The ten-year affirmage contract has not yet been renegotiated but it does not meet the needs of post-apartheid Stutterheim. This case study reviews the history and recent developments of this public-private partnership and seeks to explain why, although the need for change is recognized on all sides, little has been done to update the old agreement. It also relates these difficulties to capacity problems within the municipality.